LAHORE - Punjab Finance Minister Hashim Jawan Bakht said that there was no logical justification for tax exemption on 5 marla properties while the property tax should be imposed on the valuation of the property and there was a need of revisiting the Property Act 1958 to improvise the property taxation system in Punjab.

The Minister suggested linking of the municipal services and property taxation as improvement in water, sanitation and waste management services will increase the value of the property. 

He said the Punjab government wants the profitable taxation in the province for the taxpayers and considering bringing down the tax rate to increase the tax collection and revenue generation.

Bakht expressed these views while chairing the maiden meeting of the resources mobilisation committee meeting of the fiscal year 2020-21 here at civil secretariat on Tuesday.

The meeting was also attended by Punjab Minister for Excise and Taxation Hafiz Mumtaz Ahmed, Minister for Board of Revenue Malik Anwar, Minister for Health Dr Yasmin Rashid, Irrigation Minister Mohsin Leghari, Secretary Finance Abdullah Sumbal, Chairman Punjab Revenue Authority (PRA) Zain ul Abidain Sahi and officials of the concerned departments.

The Minister observed that the government was making revolutionary reforms to strengthen the Local Governments in Punjab by increasing the resources and powers of them. 

He said it was a golden opportunity for the Local Government to make improvements in the water and sanitation facilities, waste management services and other municipal services to increase their revenue generation. He made it clear that revenue collected by the Excise Department and other agencies would be allocated to the Local Government in the future.

The meeting reviewed the proposal of the Excise and Taxation Department on immovable urban areas properties and recommended to consult with PRA and Local Government Department and get approval from Minister Excise to again present in the next meeting of the resources mobilization.

The meeting approved the existing valuation table for property taxation till June 2021 and expanded the remission threshold to 100 percent from 90 percent.